c) Record receipt with a credit to the Rent revenue account. Amazon refers to its revenue as "sales," which is equally as common as a term. Adjustments involve increasing both an expense and a liability account. -Accounts receivable is usually increased when accruing revenues. Solution for For journal entries 1 through 10, identify the explanation that mostly closely describes it. Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. Adjustments involve increasing both an expense and a liability account. Define the Salaries payable account by selecting the appropriate statement below. a) The first day of the period -Helps in the preparation of financial statements Select the statement below that explains how to use the Income Summary account. Unearned revenue is a liability because there is a chance of a refund. (Check all that apply.). The revenues of a company are the net sales proceeds. WALKER CONSULTING Trial Balance May 31, 2020 Account Number Debit Credit Cash $4,400 Accounts Receivable 6,200 Supplies Prepaid Insurance 1.900 4,800 12,000 Equipment Accounts Payable $ 4.800 Unearned Service Revenue Owner's Capital 2,100 19,700 7.500 Service Revenue . b) Any unused prepaids existing at end of period are transferred to asset accounts. Note that when the delivery of goods or services is complete, the revenue recognized previously as a liability is recorded as revenue (i.e., the unearned revenue is then earned). a) remove the earned amount to a revenue account Indicate each account affected, whether the account is increased of the amount of the increase or decrease. Accounts receivable would be debited for $700. b) The adjusted trial balance contains only the accounts which were adjusted. The note is dated December 1 and is due on February 1. Utility expense. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owners equity section of the December 31, 2015, balance sheet of Kangaroo Consulting. c) Record all prepaid expenses with debits to expense accounts. -It is reported on the balance sheet. As of the end of the period, $200 of supplies still remain. They refer to cash received in advance of. They are a liability. Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. 5. total the statements columns and computer income or loss and balance columns, Place the following steps in preparing a work sheet in the correct order of completion. e) debit services revenue, a) credit services revenue below which are correct. ( ) Demonstrate the required adjusting entry by choosing the correct statement below. Depreciation expense b) January 15 (Check all that apply). a) Rent was paid for the month. c) increase the cash account at period-end, b) remove the unearned amount to a liability account, Chapter 8 Accounting for Long-Term Assets, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, James F. Sepe, J. David Spiceland, Mark W. Nelson, Wayne Thomas. By the end of the accounting period, the loan had been outstanding for 30 days. The required adjusting entry would be to debit the ________ (Unearned revenue/Accounts receivable/Cash/Service revenue) account and __________ (debit/credit) the _______ (Unearned revenue/Accounts receivable/Cash/Service revenue) account. b. billed. (Check all that apply.) Which of the following is the proper adjusting entry? Accounts receivable is not involved. b) credit accounts payable d) $800. Explain what unearned revenues are by choosing the correct statement below A process regulated balance quizlet What is the purpose of the adjusted verification budget?, The adjusted verification balance sheet is not part of the budget rather, it is one. ), -Mortgage payable Wages expense, Interest expense Norfolk Southern Corp. reports revenue in its income statement when the performance obligation is satisfied instead of when cash is received. They are a liability. c) Credit to Salaries Payable for $500; Debit to Salaries Expense for $2,000 d) accounts receivable being understated. billed. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Structured Query Language (known as SQL) is a programming language used to interact with a database. Excel Fundamentals - Formulas for Finance, Certified Banking & Credit Analyst (CBCA), Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM), Commercial Real Estate Finance Specialization, Environmental, Social & Governance Specialization, CFIs Advanced Financial Modeling & Valuation Course, Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management Professional (FPWM). Record the closing entries on Page 27 of the journal. e) Salaries payable will be credited for $500. They refer to cash received in advance of performing a service or product. Adjusting journal entries are prepared from the Adjustments columns of a work sheet. c) Debit Accounts receivable for $600. (Check all that apply.). -Investments in bonds, Identify the accounts below that would be classified as a long-term investment. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. (Check all that apply.). TERMS: A. Prepaid Expenses B. Unearned Revenues C. Accrued Revenues D. Accrued Expenses STATEMENTS: ___ 1. They refer to earnings which have been earned, but not yet e) The adjusted trial balance includes all accounts and balances appearing in financial statements. Explain what unearned revenues are by selecting the statements below which are correct. Multiple choice question. c) December 1 to December 31 It is a more detailed alternative to the single-step income . Which of the following is the proper adjusting entry? (Check all that apply.) Explain how to add adjustments to a work sheet when more than one adjustment is required: (Check all that apply.). They are a liability. -Taxes payable If the company fails to deliver the promised product or service or a customer cancels the order, the company will owe the money paid by the customer. Seller's viewpoint: "Accrued revenues " (also called "accrued assets" or unrealized revenues) are revenues earned by the seller for delivery of goods and services before the customer pays for them. This principle is a major part of the (timing/adjusting/estimating) process. -Financial statements are prepared more easily using the adjusted trial balance than with the general ledger. b) Credit Unearned revenues for $400. Cash, Building, Equipment. Write a one page essay describing changes that were the result of a certain political party. below which are correct. A plant asset refers to the stock purchased by a business held for future investment. Which of the following is (are) true regarding timeliness and the importance of periodic reporting? c) expenses on the income statement will be understated. ___ 2. You are to indicate the proper accounts to be debited and credited for the following transactions by writing the account number(s) in the appropriate boxes. Sort adjusted trial balance amounts to the financial statement columns. What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet? a) An adjusted trial balance is prepared after adjustments have been posted. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. A plant asset can be defined by which of the following statements? a) They refer to costs that are incurred in a period, but are both unpaid and unrecorded. The formula to figure out the profit margin of a company is ______ (Net income/Accounts receivable/Net sales) divided by _______ (Net income/Cash/Net sales). In this free session, the client explains her or his situation, and the attorney evaluates the options. An alternative to recording a prepayment of revenue initially as a revenue as opposed to a liability requires a period-end adjusting entry to: Unearned revenues refer to customer payments which have not yet been received. (Check all that apply.) -It has a life within the business greater than one year. -Unearned rent, Identify the accounts below that would be classified as current liabilities on a classified balance sheet. Show your understanding of the steps involved in adjusting entries by placing the following steps in the correct order of preparation. b) Credit Interest expense for $30. They are reported on a balance sheet. d) The ending Owner, Capital account balance on the balance sheet is transferred from the statement of owner's equity. Insurance expense would be debited for $300. The chart of accounts used by Norton Printing Company is listed below. Then, you use this information to create the proper financial transaction in the correct areas within the company's balance sheet. (Check all that apply.) Which of the following describes accrued revenue? Describe the final step in the adjusting process. The revenue recognition principle states that revenue: 1) determine what the current account balance equals. A post-closing trial balance is a list of _______ accounts and their balances from the ________ all _________ entries have been journalized and posted. c) $200 e) Total assets will be increased. a) liabilities on the balance sheet will be overstated. Supplies expense would be debited for $300. Fred is an avid user of Amazon.coms services. c) Service revenue will be credited for $900. b. 3. prepare an adjusted trial balance The line items of the income statement provide details of revenues, expenses, gains, and losses in a bid to explain how a company earned its net income. $300 were used during the month. Which of the following statements describes the expense recognition (matching) principle? How will Chimney Sweeps record this transaction? 5b. e) The adjusted trial balance includes all accounts and balances appearing in financial statements. The same is to be shown as the liability on the balance sheet a) They are reported on an income statement. Accounts payable (Check all that apply.). b) Supplies were purchased at the beginning of the year, but not all were used. Oracle Corp reports information about pending lawsuits in the notes to . By the end of the year, $400 had been earned. -Current liabilities are usually settled by paying out current assets such as cash. They refer to earnings which have been earned, but not yet Which of the following describes accrued revenue? Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. (Check all that apply.) f) Accounts are generally listed in the same order as listed in the chart of accounts. should be recorded when goods or services are provided to customers at an amount expected to be received. e) The debit and credit column totals must balance. (Check all that apply. For the current year, a business has earned (but not recorded or received) $200 of interest from investments. a) An asset will be increased. They are reported on an income statement. Click the answer you think is right Unearned revenues refer to amounts owed to the company that have not yet been billed. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. Then, use the words and their definitions to create a matching quiz. Multiple choice question. (Check all that apply.). b) Profit margin is the ratio of a business's net income to its accounts receivables. (Check all that apply.) Unearned Revenue Defined. d) Record all prepaid expenses with credits to expense accounts. Debit Depreciation expense; credit Accumulated depreci, Explain what unearned revenues are by selecting the statements below which are correct. $1,000 of supplies were purchased at the beginning of the month. The compensation could be a cash payment or a . Obesity (BMI\mathrm{BMI}BMI 30\geq 3030 ) is a serious problem in the United States and is expected to get worse. What would be the journal entry on January 31 that reflects this? (Check all that apply.) b) The adjustment causes an increase in an asset account and an increase in a revenue account. -Equipment was purchased in the middle of the year. b) Income statement, statement of owner's equity, balance sheet, statement of cash flows After the distribution is made, (1) prepare the updated stockholders' equity section and (2) compute the number of shares outstanding. . Use a 360 day year. -Notes receivable due in 2 years -an accounting system which is consistent with generally accepted accounting principles. d) No matter how a prepaid expense was initially recorded, after adjustment, the financial statements will be identical. \text{Total stockholders' equity}&\underline{\underline{\text{\$1,360,000}}}\\ A company using a calendar year-end will record an adjusting entry for a bill received on January 15 for services received during the month of December on: Cash flow statement. Which of the, An advance payment of $1,000 for services was received on December 1 and. Demonstrate. (Check all that apply.). (Check all that apply.). Demonstrate the required adjusting entry by completing the following sentence. c) Debit Interest expense for $30. Demonstrate the required half of the adjusting entry by choosing the correct statement below. Fred wants to enjoy the benefits of the service, such as free two-day shipping and access to unlimited music streaming and buys the annual subscription for $79. Unearned revenue can be thought of as a "prepayment" for goods or services . -Most companies use a one-year period or operating cycle in deciding which assets and liabilities are current. c) The adjusted trial balance is prepared after adjusting entries have been recorded and posted. Demonstrate the required adjusting journal entry by selecting from the choices below. e) Profit margin is the amount of revenue received on a sale. c) Profit margin is a useful measure of a business's operating results. At the end of the previous year, a customer owed Days Company $400. (Check all that apply.). -Six months of rent were paid in advance. The time span from when cash is used to purchase goods until cash is received from the sale of goods is called the _______ cycle, Accounts receivable a) If a prepaid expense was initially recorded as an expense, then expenses will be higher on the income statement. d) debit interest expense and credit cash, c) debit interest expense and credit interest payable, StoryBook Company provided services to several customers during the month of December. (Check all that apply. (Check all that apply.). -Supplies were purchased at the beginning of the year, but not all were used. They are reported on a balance sheet. What would be the journal entry on January 31 that reflects this? S(x)=0.00850x2+1.25x+0.8540.264x2+10.7x66.9. (Check all that apply.) Answer: D Which of the following accounts is considered a prepaid expense? (Check all that apply. a) Profit margin is also called return on sales. Some bankruptcy 1. A multi-step income statement reports a company's revenues, expenses and overall profit or loss for a specific reporting period. The revenue recording in the accounting books of an entity is necessary to calculate the net income. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. Unearned revenues refer to amounts owed to the company that have not yet been billed. What is unearned revenue and when does it occur? -The adjustment causes an increase in an asset account and an increase in a revenue account. $800 of supplies were purchased at the beginning of the month and the Supplies account was increased. Which of the statements below explains the accounting cycle? Determine which of the following transactions may require adjustments. Multiple select question. f) The ending Owner, Capital account balance on the balance sheet is taken directly from the adjusted trial balance. (Check all that apply.) a) Salaries expense would be debited for $3,500. (Check all that apply.) For the current year, Bubbles Office Supply had earned $600 of interest on investments. journalize (Check all that apply.) c) Cash, building, equipment is optional. Review the following statements and determine which is (are) correct regarding an adjusted trial balance and how it is used In preparing financial statements. Generally, unearned revenues are classified as short-term liabilities because the obligation is typically fulfilled within a period of less than a year. Unearned revenue is a term in which the transactions that are related to the receiving of money could be considered for the service or product to be provided or delivered. (The Supplies account was increased at the time of the initial purchase.) McDarrel's records $500 of accrued salaries on December 31. a) Cash will be debited for $600. (Check all that An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. -Reduces the risk of errors when working with many accounts and adjustments, What are the benefits of using a work sheet? -The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services. In what ways have certain parties changed the United States? a) Debit to Salaries Payable for $500; Credit to Salaries Expense for $2,000 Equipment was purchased in the middle of the year. d) The revenues on the income statement will be understated. Stock Retained Earnings 9 2 Accounts Receivable 3 Paper Supplies 4 Copy Machines 5 Accounts Payable 6 Note Payable . a) $75 -An account that contains a credit for the sum of all revenues credit -They refer to revenues that are earned in a period, but have not been received and are unrecorded. The loan has been outstanding for 45 days. ), $1,000 of supplies were purchased at the beginning of the month. -Accumulated depreciation is a contra account. Accrual basis accounting recognizes __________ when earned and records __________ when _________ in order to adhere to the matching principle. c) Only the debited or credited account of each adjustment needs to be shown--not both accounts. A revenue not yet recognized, collected in advanc; Generally accepted accounting principles require the use of accruals and deferrals in the determination of income. b) An adjusted trial balance is prepared after adjustments are posted, so new accounts may need to be added. c) If prepaid expense was initially recorded as an asset, then net income will be lower. c) expenses on the income statement will be understated. (Check all that apply.). Explain what unearned revenues are by selecting the statements e) Service revenue would be credited for $400. The account allows both the original cost of plant assets and the total depreciation taken to be shown simulta. ( ) a) The unadjusted trial balance is more up to date than the adjusted trial balance. interest receivable Explain. Which of the following statements are true regarding depreciation? What are current liabilities? (Income Summary is account #33 in the chart of accounts.) An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. The required adjusting entry would be to debit the ________ (Unearned revenue/Accounts receivable/Cash/Interest receivable) account and __________ (debit/credit) the _______ (Cash/Accounts receivable/Interest revenue/Interest receivable) account. Being overweight increases the risk of diabetes, heart disease, and many other ailments, but the severely obese (BMI\mathrm{BMI}BMI 40\geq 4040 ) are most at risk and the most expensive to treat. What is an intangible asset? Register Now. -Plant assets are property, plant and equipment that are tangible. b) $100 The term is used in accrual accounting, in which revenue is recognized only when the payment has been received by a company AND the products or services have not yet been delivered to the customer. -Record all prepaid expenses with debits to expense accounts. Blank 3: payable, Which of the following describes accrued revenue? Which of the following statements about the Accumulated depreciation account is (are) correct? Use this function. b) Net income is increased. Place the steps in the adjusting process in the correct order in which they would be performed. (Put the first step at the top.) By the end of the period, $300 had not yet been earned. It is the top line or gross income figure . -Entering the titles of all accounts and their account number. b) The last day of the period A Copper cable B Fiber Optics C Satellite Radio Link D Radio System Correct, In this assay both the triple mutant Ser 221 Ala Ser 255 Ala and Ser 408 Ala and, (Answers)Assessment 2_ Project 1 - Develop work plans and allocate work.docx, Clearly give your answers in the spaces provided DO NOT WRITE ANYTHING ON THE, Assuming free entry these above average profits will attract other firms to, Fig 1528 Flexion is concealed by damage to the cartilages leading to limitation, generated less additional corn than the previous bag We just entered the range, condenses large numbers of questions into a smaller more manageable set of, Chapter 13 Chapter 14 Stella comes to the courthouse shaken up and goes off by, QUESTION 24 Which MTU size can cause a baby giant error A 1500 B 9216 C 1600 D, Data Modeling and Management Given a scenario determine the appropriate data, AUSTIN HENSLEY - DNA & DNA Replication Webquest.docx. Which of the following accounts would be considered a prepaid expense or prepaid asset account? Credit Unearned revenues for $30. Accumulated depreciation is a contra account. A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. Unearned revenues refer to income reported on the income statement. An income statement shows the organization's financial performance for a given period of time. The next step is to record the amount paid by the customer as a journal entry. (Check all that apply.). No matter how an unearned revenue was initially recorded, after the adjusting entry, net income will be identical. High Quality Low Capex w ROE ROC min. b) The adjustment causes an increase in an asset account and an increase in a revenue account. By the end of the period, $300 had not yet been earned. f) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. Choose the statement below that explains what "closing" means. The problem stated that you were to use a 360 day year. The following accounts appear in an adjusted trial balance of Kangaroo Consulting. Salaries payable will be debited for $500. b) The balance sheet is the first financial statement prepared. Which of the accounts below are considered accrued expenses? Which of the statements below describe(s) a temporary account? b) Debit Interest receivable for $600. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense 3. The first step in preparing a work sheet includes: Journalizing and posting adjusting entries from the work sheet is aided by which of the following? Reason: On December 28, I. M. Greasy, Catering completed $600 of catering services. Unearned revenue refers to the money small businesses collect from customers for a or service that has not yet been provided. (The unearned revenue account was increased at the time of the initial cash receipt.) They refer to cash received in advance of performing a service or product. Consumers may seek legal advice in filing for bankruptcy. -Temporary accounts are reported on the income statement. b) Utilities expense; Cash; Owner, Capital c. Book value. Demonstrate what the correct adjusting entry should include by choosing the correct statement below. c) Profit margin is a useful measure of a business's operating results. e) Total assets will be increased. Explain your understanding of what an accrued expense is by selecting the statements below which are correct. $300 were used during the month. Review the statements below and select the items that are correct regarding the operating cycle for a business. A company borrowed $4,000 from the bank at an interest rate of 9%. (Check all that apply.). Debit Interest expense for $30. An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. $300 were used during the month. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. (Check all that apply. The entire $3,000 goes into the Unearned Revenue account because you've been paid for work you have not yet completed. -Accounts payable The income statement is the first financial statement prepared after preparing the adjusted trial balance. Prepare the income statement for the month of April 30. It is estimated that it will have a life of 5 years and zero salvage value. -Businesses report financial information at regular intervals to ensure timeliness of data. 1. prepare an unadjusted trial balance Multiple choice question. The required adjusting entry would be to debit the Salaries _____expense/payable) account and____debit/credit) the Salaries ____expense/payable/unearned) account. c) The debit and credit column totals don't have to equal each other on an adjusted trial balance. The adjusted trial balance includes all accounts and balances appearing in financial statements. a) revenue being understated -They are also called deferred revenues. The trial balance columns of the worksheet for Riverbed Company at June 30, 2019, are as follows. Explain what unearned revenues are by selecting the statements below which are correct. Which of the statements below is (are) correct regarding the accounting cycle? Unearned revenues refer to amounts owed to the company that have not yet been billed. -The adjustment can be squeezed in on one line of the trial balance. d) Expenses are increased. Building Demonstrate the required adjusting entry by choosing the correct statement below. They refer to revenues that are earned in a period, but have not been received and are unrecorded. Explain what unearned revenues are by selecting the statements Revenue Example. A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment. (Check all that apply.). The required adjusting entry would be to debit the Salaries ___________ (expense/payable) account and _______ (debit/credit) the Salaries _________ (expense/payable/unearned) account. Identify which group of accounts may require adjustments at the end of the accounting period. What is the difference between an adjusted trial balance and an unadjusted trial balance? E) The normal balance of the common stock account is a credit.

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